Manufacturing Modernization Insights from the Manufacturers’ Council of the Inland Empire
Manufacturing by the Numbers
92%
Ninety-two percent of manufacturers believe smart manufacturing will be the primary driver of competitiveness over the next three years. Companies that have already invested report average improvements of 10–20% in production output, 7–20% in employee productivity, and 10–15% in unlocked capacity.
Source: Deloitte 2025 Smart Manufacturing & Operations Survey
Every manufacturer is looking for an advantage.
Some invest in new equipment. Others expand facilities, add employees, or launch new product lines. While each of these investments can create value, the highest-performing manufacturers often share something more fundamental.
They have built organizations committed to continuous improvement.
Continuous improvement is not a single project or initiative. It is a management philosophy that asks a simple question every day:
How can we operate better tomorrow than we do today?
That philosophy is reflected in the decisions successful manufacturers make.
They measure before they invest.
High-performing manufacturers rely on data to identify where improvements will generate the greatest return. They monitor production, downtime, quality, energy use, and throughput before committing capital.
The objective is not to invest more.
It is to invest more intelligently.
They solve root causes—not symptoms.
Late shipments, rising overtime, equipment downtime, and labor shortages are often symptoms of larger operational issues.
Rather than treating each problem independently, leading manufacturers look for the underlying constraint affecting the entire operation.
They view modernization as a process.
Modernization is rarely accomplished through a single purchase.
It is built over time through practical improvements such as:
- Better production visibility
- Smarter scheduling
- Improved material flow
- Workforce development
- Energy management
- Targeted automation
- Continuous evaluation of operations
Incremental improvements often compound into significant competitive advantages.
They develop their workforce.
Technology alone does not improve a manufacturing operation.
People do.
The most successful manufacturers invest in employee training, standard work, leadership development, and continuous learning. Technology becomes a tool that enables employees to perform at a higher level—not a replacement for skilled workers.
They prepare for opportunity before it arrives.
The strongest manufacturers do not wait until capacity becomes a problem.
They prepare for growth before a major customer requests additional production, before reshoring opportunities emerge, and before operating costs begin affecting competitiveness.
Preparation creates flexibility.
Flexibility creates opportunity.
That approach is increasingly reflected across the manufacturing sector. Deloitte’s 2025 Smart Manufacturing & Operations Survey found that manufacturers are continuing to increase investments in smart manufacturing because they are realizing measurable improvements in productivity, capacity, and operational performance. Respondents also identified operations, continuous improvement, and technology as among their most mature organizational capabilities.
Modernization begins with understanding.
Every manufacturing operation is different.
A process improvement that produces an exceptional return for one company may deliver only modest results for another. That is why the most successful modernization efforts begin with an objective assessment of the operation rather than assumptions about where investment should occur.
Through the Manufacturers’ Council of the Inland Empire’s Manufacturing Modernization Assessment (MMA) program, veteran manufacturing professionals help Inland Empire manufacturers evaluate opportunities across automation, advanced manufacturing systems, energy efficiency, workforce development, operational improvement, and renewable energy. Every assessment is confidential, tailored to the individual operation, and provided at no cost through grant funding secured by MCIE for manufacturers in Riverside and San Bernardino counties.
There is no single formula for becoming a high-performing manufacturer.
But the companies that consistently outperform their competitors tend to share one characteristic:
They never stop improving.
To learn more or schedule a confidential introductory consultation, contact Sandra Sisco at ssisco@mfgcouncilie.com.
